Trading volume

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Trading volume

The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares.

Trading Volume

The measure how many trades take place for a security or on an exchange on a given trading day. A high trading volume is an indicator of a high level of interest in a security at its current price. It is an especially important tool in technical analysis, in which trading volume is used to determine the strength of a market indicator. For example, a price rise on heavy trading volume indicates that that price rise is a true indicator, while a technical analyst likely would be more skeptical of the same rise on lighter trading volume. The method for determining trading volume is called volume counting. In the United States, the SEC determines the methodology of volume counting. Trading volume is often simply called volume.

Trading volume.

Trading volume is the quantity of stocks, bonds, futures contracts, options, or other investments that are bought sold in a specific period of time, normally a day. It's an indication of the interest that investors have in that particular security or product at its current price.

References in periodicals archive ?
Trading volume growth in the banking sector averaged at 56 per cent during FY98-FY07, indicating that the trading activity in the banking sector slowed down in recent years, though it continued to contribute a significant portion to total trading volumes.
It's very encouraging when you see an IPO come through the first day with low trading volumes,'' he said.
Our findings include trading volumes and assets under management by product, region and type of investor.
Overall market liquidity was on the higher side on more-than-tripled trading volumes in the industrials and transport counters.
Overall market liquidity fell on faster shrinkage in trading volumes at the telecom, real estate, banking and transport counters.
The firm recorded a 59% year-over-year increase in daily trading volumes in the second quarter of 2004.
Overall market liquidity was on the higher side on strengthened trading volumes, especially in consumer goods and realty counters.
The record first half volume total occurred despite a difficult global macro environment for credit markets characterized by rising interest rates and reduced global trading volumes.
Substantial gains in trading volumes in telecom stocks led to overall expansion in market liquidity.
There are many exchanges that feel that larger trading volumes and sales of higher priced products can be achieved by promoting payment terms in a combination of cash and trade," said Mr.
Faster slippage in trading volumes in real estate, telecom and industrials led to overall erosion in the market liquidity.